Making Tax Digital For Income Tax: A Guide For Landlords

Posted on December 8th, 2022.

From 6 April 2024, Landlords will need to digitally report property and self-employment income through Making Tax  Digital (MTD) compatible software to HMRC.

Here are the 4 key things that Landlords need to know about these changes.

1. Preparation for the changes from April 2024 will apply to individual Landlords only

From April 2025 only individual landlords will need to start submitting their income tax returns through MTD-compatible software.

For Landlords who have their investments in a Limited company structure, there will be no changes until around 2026.

2. Landlords will need to start filing their tax returns quarterly

Landlords currently complete a tax return once per year, after the end of the tax year, but this will change in 2024.

From April 2024, landlords with an estimated income of £10,000 or more from  property investment(s) will need to start filing their returns detailing income and expenses, digitally – and quarterly, on top of the end of year statement. This will mean four separate filings and a fifth one to create the end of year statement which the other four are drawn from.

Free Resource for Landlords:  Download our Guide to Making Tax Digital

3. Penalty points system to be introduced

HMRC are restructuring the penalty system. Currently, a late submission results in a fine. This will be changed, from 1 January, there will be a new point-based system.

In practice, there will be a penalty point for each late filing. After 5 points have been accumulated, the penalty will be applied. Once the points limit is reached, the £200 fine is applied for every subsequent breach. The points expire after 2 years. In essence, HMRC are implementing digital technology to make sure that Landlords comply with filings on time. For small Landlords, best practice would be to give responsibility for this to your Accountant. 

4. Exemptions to the Making Tax Digital (MTD) Rules

With every piece of legislation, there will always be exemptions. HMRC have stated that if you are an individual Landlord who can’t manage making digital tax submissions, you may qualify for an exemption.

Landlords wishing to seek an exemption will need to apply through the HMRC website. Exemptions will be considered on a case-by case basis. You will need to state the reason(s) to HMRC why you are unable to make your declaration digitally.

Otherwise, from 6th April 2024, you will automatically be required to comply with the new regulations,

This article is intended as a guide only and does not constitute legal advice. For more information, visit


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